COVID Market Update
• The Texas Oil and Gas Association said this week that the state had managed to add 700 oil and gas exploration jobs in September. This would be the first increase since the pandemic struck. Although a glimmer of hope, U.S. Energy Secretary Brouillette said this week that he does not expect U.S. oil production to rebound in the United States any time soon. Brouillette expects U.S. oil production to stay around 11 million bpd through 2021.
• In Italy, troubling tanker activity trends are proving a bad omen for the rest of Europe, which is grappling with a second wave of Covid-19. While OPEC is busy talking up how the worst is yet behind the oil industry, Italy’s demand for gasoline dipped by more than 20% in September--a single month drop. Diesel was almost as bad, showing an 18% decrease month over month. Earnings for tankers in that neck of the woods have crashed, and now barely cover operating expenses. This coincides with Italy’s “second wave” of the coronavirus outbreak, and will likely portend what the rest of Europe will experience during other country’s second wave. This week, France announced it would impose a strict month-long lockdown in a desperate attempt to contain the spread.
• New York-based Hess Corp (NYSE: HES) was the latest E&P company to report a bigger loss than expected. In response to a nasty hurricane season that battered its Gulf of Mexico operations and tough market…